Question

Which account would be best for a long term investment?

$25,000 with 7% interest compounded CONTINUOUSLY over 6 years

$30,000 with 3.2% interest compounded MONTHLY over 6 years

$27,000 with 6.1% interest compounded CONTINUOUSLY for 6 years

Answer 1

@Directrix @zepdrix

Answer 2

@EclipsedStar @IrishBoy123 @Awolflover1

Answer 3

$25,000 with 7% interest compounded CONTINUOUSLY over 6 years
\[\large\rm 25000e^{.07(6)}\]

$30,000 with 3.2% interest compounded MONTHLY over 6 years
\[\large\rm 30000\left(1+\frac{.032}{12}\right)^{12(6)}\]

$27,000 with 6.1% interest compounded CONTINUOUSLY for 6 years
\[\large\rm 27000e^{.061(6)}\]

Answer 4

i know the sum of the 3 options is 1. $38,049 2. $36,340.80 3, $38,932.80

Answer 5

If those numbers are correct,
then I guess it's the third option, ya?

Answer 6

Assuming they mean 6 years-ish by long term.

Answer 7

yea, maybe, but he started with $27,000 at 6.1% interest and the first started with $25,000 at 7% interest. so thats what throws me off

Answer 8

which one is getting more money per year, you know what i mean?

Answer 9

If they mean longer than 6 years,
then the highest interest rate is going to be the best option.

If you calculate 30 years, I'll bet the first option is wayyy ahead.

Answer 10

ohh ok thanks